Form 1099: Basics for Business

• are engaged in a trade or business, regardless of entity type (i.e., individual/sole proprietor, LLC, s-corporation, not-for-profit, etc.), or

• own rental property that you operate for profit.

You are required to issue a Form 1099 to any business or non-employee to whom you paid, during 2021, in the course of your trade or business, at least:

• $600 in services provided (i.e., landscapers, repair companies, maintenance providers, property managers, accountants, attorneys, architects, engineers, photographers, entertainers, consultants) (Form 1099-NEC)

• $600 in payment to medical or healthcare providers (Form 1099-MISC)

• $600 in rents, including rentals of machines or equipment (Form 1099-MISC)

• $600 in prizes or awards (Form 1099-MISC)

• $10 in royalties (Form 1099-MISC)

• $10 in interest (Form 1099-INT)

• $10 in dividends (Form 1099-DIV)

The above list is not all-inclusive, but it does include the more common types of payments that must be reported on a Form 1099.

If you would like our assistance in preparing your 1099s, please contact your Walker & Armstrong professional.